can monetary gifts be tax exempt or lower the amount of taxes i have to pay.
2007-12-16 10:32:12 · 6 answers · asked by W 1 in Business & Finance ➔ Taxes ➔ Canada
Gifts from your employer are not the same as regular gifts; they are income.
They can deposit the money into your RRSP for you, if you have the room. If they do it, then they won't withhold the taxes related to that payment.
http://www.cra-arc.gc.ca/tax/business/topics/payroll/calculating/incometax/reducing/menu-e.html
2007-12-19 23:39:04 · answer #1 · answered by CanadianBlondie 5 · 0⤊ 0⤋
Lol, I love how 4 of the 5 answers referred to US tax shelters.
Your employer might give you the option of rolling the bonus into an RSP. That would allow you to shelter more than 4500 of it from taxes. Or you could put the $4,500 into an RSP on your own, which would also trigger a tax refund on your own.
2007-12-16 16:57:08 · answer #2 · answered by CHARLES R 6 · 1⤊ 0⤋
No. A holiday bonus is taxable income, like any other income paid by your employer. The amount will be included on your W-2 received in January.
2007-12-16 10:38:40 · answer #3 · answered by acermill 7 · 2⤊ 2⤋
It's not a gift, it's regular taxable income. YOu can reduce your tax liablity by donating to charity, starting a trad IRA if you're eligible (Roth IRA if you're eligible is generally better for most, but not tax deductible in current year, so won't help reduce taxes this year).
Other tax planning strategies, probably too late for these this late in the year.
2007-12-16 10:58:49 · answer #4 · answered by heart_and_troll 5 · 0⤊ 3⤋
must be taxed! Be happy you are still waling off with 4,500. That is three months take home pay for me!
2007-12-16 10:39:58 · answer #5 · answered by sugarpie2 5 · 0⤊ 0⤋
If you put some into an IRA acct. it wont be taxed til you withdraw it but then you can't use it now.
2007-12-16 10:49:51 · answer #6 · answered by Thisnthat 3 · 0⤊ 2⤋